I hate doing it but more than ever I need to keep on top of my money and stick to a strict budget. So, yesterday I sat down and went through all my fixed monthly expenses. Then I added up my fixed monthly income and did a subtraction sum.
After I've paid for all the boring things I can't avoid every month (like council tax, internet, mobile phone etc) I have the grand sum of £59.54 a month left over. This has to cover food for me, household items like cleaning stuff/toiletries etc, clothes, entertainment, energy bills and of course food for the dogs and their medications.
Obviously £59.54 isn't enough to cover these expenses and so I'll need to use my savings. When I was working I saved half my salary each month for several years. These savings were always intended to supplement my teeny teaching pension until I got my state pension too. I've also used them to pay my car, house and pet insurance in annual payments as it's cheaper. Unfortunately a certain puppy used up a large amount of this money in vet bills plus I had to get the building repair work done on the extension. This means I haven't got a lot of these savings left. I might just be able to eek them out if I can sell this house quickly.
Luckily, I have another savings fund that I don't touch. This is what's left of the inheritance I got from my uncle and has always been earmarked for estate agent and legal fees incurred in selling and buying houses. Plus hopefully a wee bit leftover for new carpets or washing machine etc if needed. I really really hope I don't need to dip into this fund 🤞
I knew when I made the decision to retire early I might find myself in this position so I'm mentally prepared. But it's still flipping scary when you see it written down in black and white!! 😱
no matter how much we plan/save there never seems to be enough, here's hoping for a quick sale when you're ready, and no more poorly dogs xx
ReplyDeleteIt's so true there never seems to be enough!! Selling it is the easy bit (I already have a very interested friend) but buying the 2 smaller properties is the biggest stress. Plus making it all come together at the same time!! :-) xxx
DeleteHi Ali, I retired early from teaching at 55 and initially I supplemented my pension with exam marking and tuition. Unfortunately covid and lockdown put paid to that and I had to tighten my belt considerably. I live in the North East of England so I don't know if this would be the same in Scotland but I was able to claim a reduction in my council tax and water rates due to living on a reduced income. Also it was possible to get help with prescription and dental charges. This helped until I was able to sell my house and downsize. Good luck with your house sale when the time comes. Tricia
ReplyDeleteAs my son and DIL currently live here I don't get the single person discount for council tax but they do make up the shortfall. Luckily prescriptions are free here and I have the best NHS dentist in town. I really need to look into supplementing my pension but fingers crossed downsizing my house will downsize my fixed costs too :-) xxx
DeleteYou can do this. It will take a bit of work on your part, but I know you are up to the task.
ReplyDeleteGod bless.
At least I've got the time now to do the research and put in the work! :-) xxx
DeleteOoh, that is scary! I just hope nothing comes up that throws a spanner in the works!
ReplyDeleteScary indeed! I've got no debt on my credit card so in an absolute emergency I've got that tucked away :-) xxx
DeleteThings are definitely tighter than I thought they would be but it's not impossible! And yep, love her to bits :-) xxx
ReplyDeleteHello
ReplyDeleteI have just found your blog
I stopped work at 53 ( I was a Social Worker and was burnt out after 30+ years). My pension is modest and I am trying to learn how to live on it . My darling husband died last March - he was only 63 and I receive
half of his pension too - I would give every penny back for more time with him
Siobhan